Azure Finance No.1 plc: 14 July 2018

This will be the first public securitisation from originator Blue Motor Finance Limited, where the Issuer will make payments on the Notes and the Residual Certificates from a portfolio comprising receivables under or in connection with HP Agreements with borrowers. These hire purchase agreements provide for equal monthly payments over the term of the agreement (with the exception of the last payment, which may include certain fees). Of note is that the portfolio will not include PCP Contracts.

Blue Motor Finance Limited is a private limited company and was originally incorporated in 1992 as Packexcess Limited. The company came under the control of the current directors and senior management in July 2012, changing its name to Blue Motor Finance Limited in July 2014. BMFL provides point of sale financing to customers on a hire purchase basis for the acquisition of motor vehicles. As of 31 May 2018 BMFL was servicing a loan book of £480m, with 65,000 individuals, an average loan size of £8,800 and a weighted average contractual loan term of 57 months.

Eligibility criteria (includes): The related HP Agreement was originated by BMFL in the ordinary course of its business at the point of sale by a Dealer or a Broker in accordance with its Credit and Collection Procedures; As at the relevant origination date, the Obligor resided in England, Wales or Scotland or, if the Obligor is a corporate entity, had its registered office in England, Wales or Scotland; The related HP Agreement was originated using Standard Documentation; The Receivable is not a Defaulted Receivable or a Voluntarily Terminated Receivable; The Receivable is denominated and payable in Sterling; BMFL has received confirmation from the Dealer that the Vehicle has been delivered to the relevant Obligor; Payments on the Receivable are not more than one monthly payment in arrears; The related HP Agreement is governed by the laws of England and Wales; The relevant Obligor has made at least one full payment to the Seller.

At the cut-off date the portfolio consisted of 46,643 agreements, where the average current outstanding principal balance is £7,825 and the largest is for £63,338. Vehicle type (by current balances); used – 98.05%, new – 1.95%. Regional concentration: South East – 18.48%, North West – 14.09%, Scotland – 11.04% and Greater London – 10.73%.

EU Retention Undertaking: The Seller will, on an on-going basis, retain all Class E Notes for the life of the transaction. Such interest corresponds to a material net economic interest of not less than 5% in the securitisation in accordance with the text of paragraph (d) of Article 405(1) of Regulation (EU) No 575/2013, paragraph (d) of Article 51(1) of Regulation (EU) No 231/2013 and paragraph (d) of Article 254(2) of the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014.

US Risk Retention Rules: The issuance of the Notes and the Residual Certificates has not been designed to comply with the US Risk Retention Rules other than the exemption under Section 20 of the U.S. Risk Retention Rules.